Gst itc credit on sale promotion items.
This query is : Resolved
15 February 2018
Hello Sir,
if i distributes the gold items for business promotion, can i take credit of GST on its purchase invoice.
please confirm.
seema
if i distributes the gold items for business promotion, can i take credit of GST on its purchase invoice.
please confirm.
seema
15 February 2018
Yes you can take Cenvat of the same, As Per GST Input Tax Credit
15 February 2018
No you cannot take input
15 February 2018
I m correcting my previous statement. Yes yiu can take
15 February 2018
is i have to reverse the credit under any section 16 or 17.
15 February 2018
No... You can't avail the benefit of ITC for Gold Purchase...
15 February 2018
HI Raja P M,
Sir, please clarify why we cannot take input.
Sir, please clarify why we cannot take input.
15 February 2018
HI Raja P M,
Sir, please clarify why we cannot take input.
Sir, please clarify why we cannot take input.
15 February 2018
Hi Mr Raja
I have some different interpretation for the same. Please correct me if i am wrong.
We can take the all the inputs which is used in furtherance of business. As gold is used for sales promotion it can be said that such expense has resulted into furtherance of business. Therefore it is eligible subject to section 17 (5).
As per 17(5)(h), goods disposed off as a gift cannot be taken as ITC. Here the goods means goods supplied by taxpayer as a taxable supply. Therefore, Gold gifts will not attract 17(5)
For example, Diwali gifts given to customer and creditors
please say what do you think??
I have some different interpretation for the same. Please correct me if i am wrong.
We can take the all the inputs which is used in furtherance of business. As gold is used for sales promotion it can be said that such expense has resulted into furtherance of business. Therefore it is eligible subject to section 17 (5).
As per 17(5)(h), goods disposed off as a gift cannot be taken as ITC. Here the goods means goods supplied by taxpayer as a taxable supply. Therefore, Gold gifts will not attract 17(5)
For example, Diwali gifts given to customer and creditors
please say what do you think??
15 February 2018
Section 17(5) (h) :
(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18,
"INPUT TAX CREDIT SHALL NOT BE AVAILABLE" in respect of the following, namely:—
...........
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples;
So, As per above rule the ITC is not available...
*Also the ITC not available for the Diwali Gifts to Customer or Employee
(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18,
"INPUT TAX CREDIT SHALL NOT BE AVAILABLE" in respect of the following, namely:—
...........
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples;
So, As per above rule the ITC is not available...
*Also the ITC not available for the Diwali Gifts to Customer or Employee
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